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Important Update for Employers Sponsoring Temporary Skilled Workers in Australia

Increased Salary Threshold and Visa Fees for Temporary Skilled Migration Program

The Department of Home Affairs has announced significant changes impacting employers sponsoring temporary skilled workers in Australia. Effective July 1, 2024, the Temporary Skilled Migration Income Threshold (TSMIT) will rise from AUD 70,000 to AUD 73,150. Additionally, visa application charges are expected to increase on the same date.

A map of Australia with three pins on it. The pins are located in Perth, Adelaide, and Melbourne. The text "Great Barrier Reef" is located off the coast of Queensland. In the top left corner of the map is a small inset map of New Guinea and surrounding islands. The title of the map is "Australia"

What the TSMIT Increase Means for You

The TSMIT is the minimum salary employers must offer sponsored temporary skilled workers. This increase translates to higher costs for employers when sponsoring foreign workers under the following visa subclasses:

  • Temporary Skill Shortage (Subclass 482)

  • Skilled Employer Sponsored Regional (Subclass 494)

  • Employer Nomination Scheme (Subclass 186)

Key Points to Consider

  • New Applications Affected: All new nomination applications lodged on or after July 1, 2024, must meet the new TSMIT of AUD 73,150.

  • Existing Applications and Visa Holders Unaffected: The increased TSMIT will not impact nominations submitted before July 1, 2024, even if the process isn't finalized by that date. Existing visa holders are also exempt from this change.

  • Planning for Upcoming Applications: Employers intending to submit new nominations before July 1, 2024, with salaries below AUD 73,150, should act swiftly. Ensure job advertisements for the nominated role are posted immediately to meet the mandatory 28-day advertising period before lodgement, if labor market testing is required.

Benefits for Temporary Visa Holders

While the increased TSMIT may raise costs for employers, it offers a positive impact for temporary visa holders by ensuring they receive a salary more closely aligned with current cost-of-living realities in Australia.

Looking Ahead: Annual Indexing Expected

This TSMIT increase follows a similar rise in 2023, and the Australian government has indicated the threshold will be indexed annually moving forward. Employers sponsoring temporary skilled workers should stay informed of these ongoing adjustments.

Stay informed and keep exploring your options to continue your journey in Australia with Red Migration.


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